Category: International Finance

AI Agents, AI Tools, Artificial Intelligence, Banking, Blockchains, content creation, cryptography, Decentralized, Digital Currency, Euro, International Finance, Productivity, Switzerland, tokenization, Yogi Nelson

 🏛️ Why Do Crypto Companies Set Up Foundations?

Yogi Nelson

by Yogi Nelson

Welcome to the BlockchainAIForum

In the world of cryptocurrencies and blockchain technology, many of the most successful projects are not run entirely by corporations in the traditional sense. Instead, they are supported by non-profit foundations. Ethereum, Cardano, Polkadot, and Tezos all operate under this model. But why? What purpose do these foundations serve, and why are so many of them headquartered in Switzerland?

🌱 What Is a Crypto Foundation?

A crypto foundation is a non-profit organization established to oversee, support, and promote a blockchain project. These foundations are legally registered entities that act as stewards of the project’s codebase, branding, and community. Unlike a traditional company that prioritizes shareholder returns, a foundation is guided by a mission, such as enabling decentralized finance or supporting smart contract development. Think of it as the moral compass and operations hub behind the scenes.

🧰 What Do Crypto Foundations Actually Do?

Foundations wear many hats, and their responsibilities often include:

👨‍💻 Funding Developers – They allocate grants or directly hire developers to maintain and upgrade the protocol.

📣 Marketing & Community Growth – Foundations run educational campaigns, organize conferences, and promote adoption of the blockchain.

⚖️ Legal and Regulatory Advocacy – They advocate for favorable regulations and help navigate legal challenges.

📖 Governance and Roadmaps – They help shape and coordinate the roadmap of the project, though governance can also be decentralized.

📊 Ecosystem Grants – They fund startups, research groups, and hackathons that build on or support the core protocol.

🔒 Safeguarding Intellectual Property – In many cases, they hold the trademarks and copyrights associated with the project.

🚀 How Do Foundations Help a Crypto Project Grow?

Foundations provide a stable and legal structure that helps a project mature and attract broader participation. Here’s how they contribute to growth:

• Attracting Talent

• Building Trust

• Creating Ecosystems

• Fostering Community

• Serving as Legal Entities

💸 How Are Foundations Funded?

Funding typically comes from two main sources:

🪙 Initial Token Allocations – When the cryptocurrency is launched (through an ICO or other means), a percentage of the total supply—often 5% to 20%—is allocated to the foundation.

🧾 Donations and Grants – Some foundations accept voluntary donations from the community, philanthropists, or crypto-focused VCs.

📈 Strategic Investments – In some cases, foundations hold and invest part of their treasury to ensure long-term financial sustainability.

🇨🇭 Why Are So Many Crypto Foundations Based in Switzerland?

Switzerland, particularly the canton of Zug (aka “Crypto Valley”), has become a hotspot for crypto foundations. I visited and the valley is stunning, but beyond the natural beauty, here’s why:

⚖️ Favorable Legal Framework. Until very recently the USA was hostile to crypto projects.

🔐 Privacy and Financial Stability

🌍 Global Neutrality

🧠 Pro-Blockchain Culture

🧭 Examples: Ethereum Foundation, Cardano Foundation, Web3 Foundation, Tezos Foundation

🧾 Final Thoughts

Crypto foundations serve a vital role in the blockchain ecosystem. They’re not just legal wrappers for projects—they are engines for long-term growth, adoption, and legitimacy.

Until next time,

Yogi Nelson

📚 Sources

1. Ethereum Foundation: https://ethereum.foundation/

2. Cardano Foundation: https://cardanofoundation.org/

3. SwissInfo: Why Crypto Projects Choose Switzerland: https://www.swissinfo.ch/eng/cryptovalley

Banking, Blockchains, Decentralized, Digital Currency, International Finance, Science, tokenization, Uncategorized

🏦 Proof of Reserves in the Age of the Genius Act–How On-Chain Transparency is About to Get Smarter, Safer, and Federally Regulated

Yogi Nelson

Welcome to the BlockchainAIForum

by Yogi Nelson

🔍 What Is Proof of Reserves?

Proof of Reserves (PoR) is a method used by crypto platforms—especially those holding customer funds, like exchanges and stablecoin issuers—to publicly demonstrate that they actually possess the assets they claim to hold. At its core, PoR is a transparency mechanism. It allows users to verify that a custodian or exchange has sufficient reserves to match its liabilities (user deposits).

Example:
If a crypto exchange claims to hold 10,000 BTC on behalf of users, PoR should allow anyone to independently confirm that those 10,000 BTC exist and are not being rehypothecated or loaned out irresponsibly.

🛠️ How Proof of Reserves Works Today: Step-by-Step

  1. Snapshot of Liabilities
    The platform takes a cryptographic snapshot of its liabilities—i.e., user account balances—using a Merkle Tree to protect user privacy.
  2. Auditor Verification
    A third-party auditor verifies that wallet balances match the claimed reserves, both on-chain and off-chain (e.g., fiat).
  3. Merkle Proof for Users
    Users can verify their individual balances were included, without seeing anyone else’s data.
  4. Public Publication
    The proof and auditor certification are published online, for full transparency.

🧠 Enter the Genius Act: What Just Changed?

In 2025, President Trump signed into law the Genius Act (Guiding the Establishment of Neutral, Independent, and Uniform Standards for Stablecoins). It is the first federal stablecoin law in the United States and sets enforceable guidelines for Proof of Reserves.

Key Provisions:

  • ✅ Mandatory monthly PoR audits for stablecoin issuers
  • ✅ Auditors must register with the Fed or OCC
  • ✅ Support for smart contract-based reporting
  • ✅ Consumer-facing transparency dashboards
  • ✅ Criminal penalties for reserve misreporting

🔄 How Proof of Reserves Will Evolve Post-Genius Act

1️⃣ Smart Contracts Will Automate Reporting. Stablecoin issuers will publish reserve data in real-time via on-chain smart contracts. No more waiting for PDF reports every 30 days.

2️⃣ Standardized API Interfaces. Federal APIs will allow anyone—developers, researchers, users—to access reserve data across all compliant stablecoins in the same format.

3️⃣ Integration with FedNow and CBDCs. Expect PoR frameworks to integrate with real-time payments infrastructure like FedNow, and eventually with central bank digital currencies.

4️⃣ Auditor Decentralization via zk-Proofs. Zero-knowledge proof systems will offer privacy-preserving audit alternatives. Platforms can prove solvency without exposing sensitive business data.

5️⃣ Penalties Add Teeth to Transparency. Unlike the pre-2022 era of voluntary disclosure, the Genius Act enforces real penalties—including jail time—for false or misleading PoR claims.

🧩 Why This Matters for Users and Developers

  • 🔐 Greater Trust: Real-time proof builds credibility.
  • 📈 Mass Adoption: Retail and institutional users feel safer.
  • 💻 Better UX: Wallets and apps can display verified reserve info.
  • 🏛️ Regulatory Clarity: Clear rules mean better innovation pathways.

🚀 Final Thoughts: Proof of Reserves Grows Up

Proof of Reserves began as a “nice to have” for ethical exchanges. Thanks to the Genius Act, it is becoming the legal standard and a foundation for U.S.-based stablecoins.

Expect:

  • 🔄 Continuous, on-chain reserve reporting
  • 📊 Unified federal dashboards
  • 🔍 Fewer excuses for hidden risks

Would you trust a bank that never showed you its vault? With PoR 2.0 under the Genius Act, now you don’t have to.

Until Next Time,

Yogi Nelson

AI Agents, Artificial Intelligence, Banking, Blockchains, cryptography, Digital Currency, International Finance, Stocks, tokenization, Uncategorized, Yogi Nelson

📈 The Rise of Tokenized Stocks: A Beginners Guide

Yogi Nelson

Welcome to the BlockchainAIForum

Investing is changing at lightning speed thanks to blockchain technology. One of the most exciting innovations is tokenized stocks. But what exactly are they? How do they work? Why do some investors love them while others worry? Let’s break it down step by step!

🪙 What Are Tokenized Stocks?

Tokenized stocks are digital representations of real-world stocks on a blockchain. Imagine buying shares of Apple or Tesla—but instead of going through a traditional brokerage, you receive tokens on a blockchain that mirror the value of those stocks. Each token typically represents one share (or even a fraction of one share) of a company. These tokens can be traded on blockchain-based platforms just like cryptocurrencies.

🛠️ How Do Tokenized Stocks Work? (Step by Step)

Let’s go through it from start to finish:

1️⃣ Underlying Asset

A real-world stock (for example, Tesla stock) exists and is held in custody by a licensed broker or institution. This entity ensures that the tokens are backed 1:1 by real shares.

2️⃣ Token Creation

A blockchain platform issues tokens representing these shares. Smart contracts automate issuing, transferring, and recording ownership.

3️⃣ Buying and Selling

Investors buy these tokens on crypto exchanges that support them, trading them much like Bitcoin or Ethereum.

4️⃣ Fractional Ownership

Unlike traditional stocks that might require buying whole shares, tokenized stocks allow fractional ownership. You can buy 0.1 of an Apple share, making investing more accessible.

5️⃣ Settlement on the Blockchain

Transactions settle on-chain, recording ownership changes immediately or within minutes instead of days.

💡 Advantages of Tokenized Stocks

  • ✅ 24/7 Trading
    Unlike traditional stock markets that close overnight and on weekends, tokenized stocks can trade at any time.
  • ✅ Global Access
    Anyone with an internet connection and a crypto wallet can invest, opening markets to investors in regions without traditional brokerages.
  • ✅ Fractional Shares
    Tokenization lowers the barrier to entry. Instead of buying a whole $1000 share, you can invest $10.
  • ✅ Faster Settlement
    Blockchain-based settlement can be near-instant, reducing counterparty risk and eliminating some middlemen.
  • ✅ Improved Transparency
    All transactions are recorded on-chain, enhancing traceability and auditability.

⚠️ Disadvantages of Tokenized Stocks

  • ❌ Regulatory Uncertainty
    Regulators are still figuring out how to treat these assets. This uncertainty can lead to sudden changes in availability.
  • ❌ Counterparty Risk
    Tokens are only as good as the custodian holding the real shares. If that custodian is dishonest or goes bankrupt, the backing can vanish.
  • ❌ Limited Platforms
    Not all exchanges support tokenized stocks. Liquidity can be limited compared to traditional markets.
  • ❌ Jurisdictional Restrictions
    Many tokenized stocks cannot legally be sold in certain countries (for example, the U.S.) due to securities laws.

⚖️ The State of Regulations

Regulation is the biggest wild card in the future of tokenized stocks.

  • In the United States, the SEC generally considers these tokens securities. Selling them without proper licenses can be illegal.
  • Some platforms have previously offered tokenized stocks without full regulatory approval, drawing heightened scrutiny.
  • The European Union is taking a more controlled approach. The EU’s MiCA (Markets in Crypto-Assets) framework sets rules for digital assets, but tokenized stocks may fall under existing securities laws.
  • Countries like Switzerland and Singapore have clearer guidelines encouraging innovation while protecting investors.

In short, the landscape is fragmented. Companies issuing tokenized stocks must navigate a patchwork of local laws and face the risk of regulatory crackdowns.

🌍 Real‑World Example: Robinhood’s Tokenized Stocks in Europe

In June 2025, Robinhood made headlines by launching tokenized U.S. stocks and ETFs for users in the European Union and European Economic Area. Through a partnership with the Arbitrum blockchain, Robinhood offers over 200 stock and ETF tokens, including major companies like Apple, Nvidia, and Microsoft, as well as private firms such as OpenAI and SpaceX.

🎁 Launch Incentive & Scope

Robinhood incentivized early adoption by giving European users who onboarded before July 7, 2025, €5 worth of OpenAI and SpaceX tokenized shares. However, these tokens are backed by a special purpose vehicle (SPV) and do not confer actual ownership, voting rights, or dividends.

🚀 Market Impact & Strategy

Robinhood’s stock price surged as much as 12–13%, hitting record highs after the announcement. Analysts see this move as a major revenue expansion opportunity, with the potential to scale globally as regulation evolves. Robinhood is also developing its own Layer 2 blockchain optimized for tokenized real-world assets.

🧾 Key Considerations

  • Synthetic Exposure: These tokens offer price exposure but do not represent real equity. OpenAI, for example, publicly distanced itself from the offering, clarifying it was launched without its authorization.
  • Regulatory Scrutiny: Authorities such as Lithuania’s central bank and the European Securities and Markets Authority (ESMA) are reviewing the offering to ensure compliance with securities laws.

Robinhood’s European launch shows both the promise of tokenized stocks—greater accessibility, 24/7 trading—and the complexities of regulation and legal frameworks.

🔮 The Future of Tokenized Stocks

Tokenized stocks aim to democratize investing, making it cheaper, faster, and more global. If regulators can agree on consistent, investor-friendly rules, tokenized stocks could become as mainstream as ETFs.

But challenges remain. The sector will need:

  • Stronger custodial frameworks
  • Clearer, harmonized regulations
  • Greater public awareness and education

📌 Conclusion

Tokenized stocks are a compelling example of blockchain reshaping traditional finance. By enabling fractional, 24/7, globally accessible trading, they break down old barriers. But they also introduce new risks—especially around regulation and custodial integrity.

As the technology matures, we may see the best of both worlds: the reliability of traditional markets combined with the innovation of blockchain. For now, investors should stay informed, understand the risks, and watch the evolving regulatory landscape carefully.

Until next time,

Yogi Nelson

AI Agents, AI Tools, Artificial Intelligence, Banking, Blockchains, cryptography, Decentralized, Digital Currency, international aid, International Finance, Productivity, Science, Uncategorized, Yogi Nelson

The Advantages of Stablecoins for Sending Remittances and International Payments

Yogi Nelson

🌍💸

By Yogi Nelson

Welcome to the BlockchainAIForum where your technology questions are answered. Today we answer the following question: What are the advantages of stablecoins to transmit remittances and international payments?

Sending money across borders has long been expensive, slow, and sometimes unreliable. Millions of families around the world rely on remittances—money sent home by people working abroad. Traditional methods often take days to arrive and cost a big chunk of the amount sent in fees.

Enter stablecoins: a type of cryptocurrency designed to hold a steady value, usually pegged to a traditional currency like the U.S. dollar. While “crypto” might sound complicated or risky, stablecoins have clear advantages for cross-border payments—especially for everyday people who just want to get money to loved ones quickly and cheaply. Below, let’s explore what makes stablecoins such a game-changer for international payments.

🕰️ 1️⃣ Faster Transfers

Traditional money transfers often rely on banks and money transfer operators. These institutions use old payment networks that involve multiple middlemen. It can take 2–5 business days for the money to arrive. I can speak from personal experience–too slow in today’s world.

✅ With stablecoins:

  • Transfers are nearly instant or settle in minutes.
  • Blockchain networks operate 24/7, including weekends and holidays.

Example: Sending USDC (a popular U.S. dollar-pegged stablecoin) from the U.S. to someone in Panama can take under 10 minutes, compared to days via bank wires.

💰 2️⃣ Lower Fees

Sending money internationally is notoriously expensive. According to the World Bank, the average remittance fee is around 6% globally—and even higher in some regions. Banco Popular charged me $100 to send $5,000 to Panama. Way too expensive!

✅ Stablecoins reduce fees because:

  • No need for multiple banks to process the payment.
  • No foreign exchange markup if both sender and receiver use the same stablecoin (e.g., USDC, USDT).

Example:

  • $100 sent via Western Union might cost $6–10 in fees.
  • $100 sent as a stablecoin can cost under $1 in network fees, depending on the blockchain used.

🌐 3️⃣ Global Accessibility

Many people in developing countries do not have bank accounts. But they often have smartphones. Stablecoins can be sent, received, and stored on mobile wallets, without the need for a traditional bank.

✅ Key benefits:

  • Financial inclusion for the unbanked or underbanked.
  • Access to USD-equivalent value without needing a dollar bank account.

Example: A worker in the U.S. can send USDC to a family member in El Salvador who holds it in a smartphone wallet, without needing local bank infrastructure.

💵 4️⃣ Protection Against Local Currency Volatility

In some countries, local currencies lose value quickly due to inflation. Receiving money in local currency may mean losing purchasing power almost immediately.

✅ Stablecoins help by:

  • Being pegged to stable currencies like USD.
  • Preserving value across borders and over time.

Example: A family in Argentina might prefer to receive USDC instead of pesos, protecting their remittance from inflation.

🔐 5️⃣ Transparency and Security

Stablecoin transactions are recorded on blockchains, which are public, auditable ledgers. This adds an extra layer of security and transparency.

✅ Advantages:

  • Sender and receiver can track the transfer in real-time.
  • Less risk of funds being lost in transit.
  • Resistant to censorship and freezes compared to some traditional systems.

⚡️ How Does It Work in Practice?

Here’s a simplified step-by-step:

  1. Sender buys stablecoins on an exchange or app.
  2. Sender transfers stablecoins to the recipient’s wallet address.
  3. Recipient receives them instantly or in minutes.
  4. Recipient can hold them, spend them where accepted, or convert to local currency.

This simple flow cuts out middlemen and delays.

🌟 Conclusion: A Better Way to Send Money

Stablecoins are not just a trend. They offer real, practical benefits for millions who rely on international payments:

  • ✅ Faster delivery times.
  • ✅ Lower costs.
  • ✅ Greater accessibility.
  • ✅ Protection from inflation.
  • ✅ Transparent and secure transactions.

Of course, challenges remain, like educating users, ensuring good regulation, and making stablecoins easy to cash out locally. But as adoption grows, these hurdles are being addressed.

For many families, stablecoins are already changing the way money crosses borders, making remittances fairer and more efficient.

💬 My closing thought comes from Ethiopia where they say: “a fool is thirsty in the midst of water.” If you have thoughts or questions about stablecoins and remittances, drop them in the comments below!

Until Next time,

Yogi Nelson

Artificial Intelligence, Blockchains, cryptography, Digital Currency, international aid, International Finance, Uncategorized, Yogi Nelson

Understanding Blockchain Adoption in Uzbekistan

Yogi Nelson

Welcome to the Blockchain & AI Forum, where your technology questions are answered!  Today’s question: are blockchain and crypto currency adoption all the rage in Uzbekistan?

Seventeen years.  Yes, only 17 years.  In just 17 years, blockchain based projects, including bitcoin, starting from nothing, and all the while battling powerful incumbents, have spread far, wide, and fast to reach places, and spaces, that are distant and unfamiliar to most Westerns.  Today, I’ll highlight just one example of this phenomenon, the nation of Uzbekistan.  Let’s start with the obvious—where is Uzbekistan?

Uzbekistan is located in Central Asia.  Along with Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan, they were all former USSR republics.  Uzbekistan was part of the ancient silk road–a trade networks that connected China with Western Europe.  Although the silk road occurred more than half a millennia ago, Uzbekistan remains connected to the broader world, this time via blockchain and crypto-currency.  Let’s jump five centuries to the 21st.

Setting the Regulatory Stage: The National Agency of Perspective Projects, (NAPP) is the government body that regulates and licenses crypto in Uzbekistan.  In 2022, Uzbek President, Shavkaat Mirziyoyev, ordered NAPP to develop crypto regulations.  NAPP listened and took action.  By early 2023, crypto regulations were in place; by year’s end the first crypto license was issued!  Impressive.  Hold on, the news gets better.  Earlier this year, NAPP authorized Biance, the world’s largest crypto currency exchange, to offer services in Uzbekistan.  Customers are now able to deposit and withdraw funds in the national currency, the Soum, and conduct a wide range of transactions.  More on that in a moment.

What Happened After Crypto Regulations Were Adopted: Since adoption of clear and reasonable crypto regulations, development and usage of crypto in Uzbekistan has skyrocketed.  According to Coin Geek, a journal dedicated to the crypto world, Uzbekistan lacked behind its four Central Asian neighbors prior to 2022.  Not anymore.  Now it’s a leader.  As of this date, there are 15 licensed firms in Uzbekistan and total transactions surpassed $1B in 2024.  Awesome. Moreover, over 500,000 Uzbeks have digital assets—about 2% of the population.  The Uzbek government collected over $3M in fees and revenues in 2024.  This year the government announced an increase in crypto related fees.  What a surprise!  Lol.

Why Crypto Surged—3 Reasons:  Did a crypto friendly government policy trigger the crypto tsunami?  In part, yes.  When Uzbekistan created clear and stable regulations there was a favorable market reaction.  However, government regulations did not create demand; a market for these assets and products existed a-priori.  Crypto in Uzbekistan, and in every nation, is a counter narrative to the existing status quo and a solution to market demand. I’ll give you three specific reasons for the flood of crypto in Uzbekistan, starting with seamless cross-border transactions.

Uzbekistan has a long history of cross-border finance transactions, going all the way back to the silk road, as previously noted.  United Nations data reveals that in 2024, $14B worth of remittances occurred in Uzbekistan.  Stable-coins facilitate fast, easy, and affordable cross border transactions, hence the demand for crypto. 

Reason two is inflation.  Inflation in Uzbekistan ran at 10% in 2024.  Inflation is effectively a “hidden tax” because it erodes purchasing power of middle/lower-income families.  Almost all stable coins are denominated in U.S. dollars. Therefore, although the has been inflation in the US, it is nowhere near 10%, hence that makes dollar based stable coins a hedge against currency inflation. 

Third reason is speculation, plain and simple.  An honest analysis must acknowledge reality—many crypto projects amount to gambling and speculation.  Not a judgement; just an honest assessment.  Apparently folks in Uzbekistan like risk and freedom to choose.   

Time to end with a proverb from Uzbekistan, where they say: “it is not the eyes that are blind, but the heart”.

Until next time,

Yogi Nelson